Profile picture for Kalikala1

We have a contract on a house that is a short sale. We put in the contract that the realtor cannot

We have a contract on a house that is a short sale.  We put in the contract that the realtor cannot accept any back up offers.  We had to put $1500 to the bank that they required of us to secure that we wouldn't put offer on another house.  We have waited 3 months now and the bank counter offered the asking price of $250 and came back at $270 and we pay all closing costs.  We countered at $260 and the realtor said their negotiator would only go to $265 firm.  She also said that is we are not going to accept that she would notify the back up offer.  So didn't she violate the contract by accepting a verbal, non-verbal, written or non-written back up offer.  What is the protocol when this happens?  Should I report her for doing this?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012 - Orlando
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (9)

In order to file a complaint, you need proof that the SELLERS  agent ( you apparantly do not have your own agent) really did take a backup contract.  There are hundreds of complaints filed monthly against realtors that do a lot worse, so your case will more than likely not get a lot of attention.  That is the reality and I wish it were not so.

Regardless, you have to make a decision whether or not you want to buy the property and have the extra money for closing costs.  Ask youself ...."Is the property still worth it?"  More than likely it is.

Eve in Orlando
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 27 2012
Can you skip Pizza night? Huh? the difference between your counter offer and the bank's counter off is $5,000. At today's interest rates, that is $20 a month. Sounds like a good deal, sight unseen, to me.  If I were your agent, I suggest getting the house and getting the deal done.  The good news here is you have a good agent representing your best interests. As for whether the listing agent is playing fair, remember, her client is likely freaking out about not selling prior to December 31st, 2012. That "Fiscal Cliff" stuff in the news since the election? One of the items regards short sale owners facing taxes on the debt that is not paid off in a short sale - that is probably tens of thousands of dollars.  I wrote a general blog here on short sales:  [deleted by Zillow moderator. Please see our Good Neighbor Policy]  I hope you get the house.  Good luck.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 26 2012

Unfortunately, if the bank won't accept your offer,the next indicated step for the agent listing the property would be to look at any back up offers that came in(that perhaps were not submitted until the bank rejected your offer),that came in. Although I don't know what your agreement said verbatim,  once the bank says no, and you decide you do not want to come up to the price they are asking, the only other alternative would be to submit other offers. Hopefully the agent who submitted your offer stuck to their original agreement, and it wasn't until the bank countered that they submitted other offers. I don't know if they can legally accept that kind of agreement in the first place....a grey area perhaps....
   

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
It sounds unfair but a counter offer is basically opening the agreement up to renegotiating. The listing agent has an obligation to the seller first. An as such he/she must do what's in the best interest of the seller. In this case the bank countered and you decided to counter them back. The listing agent has an obligation to reach out to any other interested parties. I suggest going with the counter or moving on.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
A verbal offer received is not technically accepting a back up offer. You can report this to FREC if you feel necessary but sounds to me like the agent was just keeping track of leads for the seller's as they should. My advise would be to either accept the banks counter offer or move on to another property. Good luck to you. Hope everything works out for you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
if your offer was accepted by the sellers and submitted for their banks approval to allow the sale for less than owed, you have the right to reject the banks counter and move on... (during the review period the bank will have completed an appraisal of the property to determine its current value)

or, you have the right to accept the banks counter and close

if you chose to reject the banks counter of your offer for less than owed, the buyer has no right to restrict another buyer to present an offer at the bank approved price that will create a successful completion of the short sale
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
Profile picture for wetdawgs
It sounds like there are at least two concerns:

Hearing a verbal offer or even receiving a written back up offer is quite different from "accepting" an offer.  In a short sales situation, the agent would be foolish not to remember that there are other interested parties as many short sales don't come to closure.    Did you pay extra to the agent to ensure no back up offers?

It sounds like you and the bank are in disagreement about price, so you don't yet have a contract as it is still in the volleys of counters.   You've heard what their bottom line is, so now it is time to make a decision on whether you can accept that or not.

A request for closing costs is often rejected out right in short sales and foreclosures (as well as traditional sales when a sellers market).    Closing costs impact the bottom line, therefore, the offer is equivalent to a lower offer without closing costs.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
To me, hearing the story it doesn't look like you ever had an accepted executed contract since counters were still going back and forth. In that case the backup offer detail wouldn't be a factor because your contract was never officially accepted. However if you feel as though you were cheated in some way, contact someone such as a lawyer who can give you legal advice about your circumstance and situation. Also, short sales are such a headache...good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
First of all a verbal is meaningless. Welcome to the wonderful world of short sales and the max frustration available in property sales these days. if you want a:
Fast
Easy
For Sure
Predictable
Courteous
Effortless

Transaction then by all means avoid short sales!!!!!!!!! They are not fun, quick or easy. You might have a contract with a seller, BUT the bank has the final say yes or no and it is written in as a contingency for the sale. Bottom line is If the Bank Ain't Happy the Deal will Die. Get use to it. BTW, banks do not like paying closing costs and will fight that all the way. Your agent should be telling you all this. Trying to box in a bank on a short sale is not easy and likely won't happen.

Tim
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 14 2012
 
Related Questions
Need help/advice buying a single family home near Florida Hospital-Celebration
Profile picture for Mark LeMenager
Latest answer by Mark LeMenager
August 07 | 5 answers
FREAKING OUT!!!!!!!
Profile picture for Joshua Lerette
Latest answer by Joshua Lerette
June 30 | 4 answers
Under contract...now what?
Profile picture for Diana Watson
Latest answer by Diana Watson
June 04 | 3 answers
Buying in Orlando Florida!
Profile picture for DanaTrivino
Latest answer by DanaTrivino
May 31 | 10 answers
What is the balance to close on a residential real estate contract?
Profile picture for Ofe Polack
Latest answer by Ofe Polack
May 26 | 3 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 7715 Covedale Dr, Orlando, FL Home For Sale
    7715 Covedale Dr, Orlando, FL 32818

     For Sale: $25,900

    • Beds: 4
    • Sqft: 1778
    • Baths: 2.0
    • Lot: --
  2. 1354 Lucaya Cir, Orlando, FL Home For Sale
    1354 Lucaya Cir, Orlando, FL 32824

     For Sale: $73,000

    • Beds: 2
    • Sqft: 952
    • Baths: 2.0
    • Lot: --
  3. 1820 Hinckley Rd, Orlando, FL Home For Sale
    1820 Hinckley Rd, Orlando, FL 32818

     For Sale: $119,900

    • Beds: 3
    • Sqft: 1531
    • Baths: 2.0
    • Lot: --